In the normal circumstances the object level is not allowed to change for a functional object but there is a option in site setting(Ignore object level validation toggle) which will allow the changing of the object level when moving the functional object to a different parent object
 

Once this site setting is added it cannot be reversed and will be applicable for all functional object movements for that site

Thanks for you help.  That worked.  Not having the object level validation is not a problem for us.  Thanks again